Financial Data and Key Metrics Changes - The company reported net income of $1,700,000 for the quarter, reflecting continued earnings pressure compared to $15,300,000 in the prior quarter [6][21] - The provision for credit losses increased to $26,300,000, with $13,900,000 related to the increase in the office overlay [15][21] - The allowance for credit losses rose to $129,500,000, representing coverage of total loans at 1.63%, an increase of 19 basis points from the prior quarter [15][22] - Net interest income before provision totaled $65,600,000, decreasing from $70,800,000 in the prior quarter [24] - The tangible common equity ratio decreased two basis points to 11% at quarter end, while book value per share increased by $0.39 to $40.99 [22][23] Business Line Data and Key Metrics Changes - Commercial lending grew by $109,100,000 or 4.3% over the previous quarter, indicating positive momentum in this segment [9] - Deposits increased by $146,200,000, largely through time deposits in digital and branch channels [10] - Non-interest income rose to $8,200,000 for the first quarter, compared to $4,100,000 in the prior quarter, driven by a separate account BOLI transaction [27][28] Market Data and Key Metrics Changes - The company noted modest exposure to government contracting and GSA-linked assets, which reduces sensitivity to changes in federal budget spending [10] - The DC economy is diversified, including educational institutions, a growing technology sector, and tourism, supporting long-term stability [11] Company Strategy and Development Direction - The company is focused on preserving capital flexibility, improving portfolio quality, and managing through volatility while maintaining long-term franchise value [13][30] - There is an emphasis on executing a disciplined strategy to enhance franchise value and position the company as a leading community bank in the Greater Washington DC Metro Area [9][11] - The company plans to explore asset disposition strategies for office loans to address evolving valuation risks [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged sustained pressure on office property valuations and the need for adequate reserves [12] - The company remains optimistic about the long-term strength of the Washington DC region despite current uncertainties [11][30] - Management is actively reassessing capital allocation priorities, including shareholder return strategies, in light of credit conditions [13] Other Important Information - The company has a strong liquidity position with available liquidity totaling $4,800,000,000 [24] - The average deposits have grown by $381,600,000 from a year ago, reflecting a stable funding base [23] Q&A Session Summary Question: Can you provide more details on the reserve build related to the office portfolio? - The reserve increase was driven by actual appraisal experiences and updated assumptions regarding probability of default and loss given default [36][37] Question: What is the outlook for the C and I portfolio growth? - All indications point to an increase in the C and I portfolio growth due to new team members and a robust pipeline [79][80] Question: How sensitive is the margin outlook to potential Fed rate cuts? - The forecast does not include changes to Fed rate cuts, and the company is relatively neutral to interest rate movements in the short term [43][46] Question: What is the company's strategy regarding loan sales and resolutions? - The company is considering various strategies, including loan sales and aggressive resolutions, based on a cost-benefit analysis [72][73]

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Eagle Bancorp (EGBN) reported $73.86 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 5.7%. EPS of $0.06 for the same period compares to -$0.01 a year ago. The reported revenue represents a surprise of -2.81% over the Zacks Consensus Estimate ...

Group 1 - Eagle Bancorp reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.46 per share, and compared to a loss of $0.01 per share a year ago, representing an earnings surprise of -86.96% [1] - The company posted revenues of $73.86 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.81%, and down from year-ago revenues of $78.29 million [2] - Eagle Bancorp shares have declined approximately 19.9% since the beginning of the year, while the S&P 500 has declined by -10.1% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.53 on revenues of $79.32 million, and for the current fiscal year, it is $2.31 on revenues of $323.6 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Group 3 - The estimate revisions trend for Eagle Bancorp is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

[Company Overview](index=3&type=section&id=Company%20Overview) Eagle Bancorp, Inc. is a prominent financial institution in the Washington D.C. metro area, holding a strong market position with over $11 billion in assets [Company Snapshot and Market Position](index=3&type=section&id=Company%20Snapshot%20and%20Market%20Position) Eagle Bancorp, Inc. is a significant financial institution headquartered in the Washington D.C. metropolitan area, holding a strong market position by deposit market share - Operates in the attractive Washington D.C. metropolitan market, which features a dynamic mix of public and private sector activity and high household incomes[8](index=8&type=chunk) - Ranks as one of the largest banks headquartered in the Washington D.C. area and is **3rd by deposit market share** for banks under **$15 billion in assets**[9](index=9&type=chunk) Eagle Bancorp at a Glance (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Total Assets | $11.1 billion | | Total Deposits | $9.3 billion | | Total Loans | $7.9 billion | | Shares Outstanding | 30,368,843 | | Market Capitalization | $633 million (as of April 22, 2025) | | Tangible Book Value per Common Share | $40.59 | [Investment Highlights and Strategy](index=5&type=section&id=Investment%20Highlights%20and%20Strategy) Eagle Bancorp offers an attractive investment opportunity due to its strong capital, liquidity, disciplined cost structure, and strategic profitability initiatives [Investment Thesis and Key Strengths](index=5&type=section&id=Investment%20Thesis%20and%20Key%20Strengths) Eagle Bancorp presents an attractive investment opportunity due to its best-in-class capital levels, strong liquidity, disciplined cost structure, and strategic D.C. geography - Boasts best-in-class capital levels with a **CET1 Ratio of 14.61%**, placing it in the top quartile of bank holding companies with over **$10 billion in assets**[14](index=14&type=chunk) - Maintains a strong liquidity position, with a liquid assets to total deposits ratio of **7.3%** and total available liquidity of **$4.8 billion**; uninsured deposits represent only **25%** of total deposits[14](index=14&type=chunk) - Operates with a disciplined, branch-light cost structure, reflected in an Operating Noninterest Expense to Average Assets ratio of **1.52%** and an Operating Efficiency Ratio of **61.5%**[14](index=14&type=chunk) [Strategies for Profitability Improvement](index=6&type=section&id=Strategies%20for%20Profitability%20Improvement) The company focuses on growing and diversifying deposits, expanding its C&I team, and increasing fee income to enhance profitability and improve ROAA - Actively working to grow and deepen relationship deposits to reduce reliance on higher-cost and non-core funding sources[18](index=18&type=chunk) - Expanding the C&I team and building sales behaviors within Treasury Management to accelerate customer acquisition and deepen deposit relationships[16](index=16&type=chunk) - Maintaining pricing discipline on new loans and focusing on operating efficiency to achieve positive operating leverage[18](index=18&type=chunk) - As of Q1 2025, Eagle's **ROAA of 0.06%** is significantly lower than its peer group median[16](index=16&type=chunk) [Peer Comparison: Capital and Liquidity](index=7&type=section&id=Peer%20Comparison%3A%20Capital%20and%20Liquidity) Compared to its peers, Eagle Bancorp demonstrates superior capital and liquidity, with a high CET1 ratio and robust cash equivalents to total deposits - Capital ratios are high relative to peers, with a **CET1 ratio of 14.6%** and an Excess CET1 (over 9%) plus ACL to Total Loans ratio of **8.2%**, both ranking near the top of the peer group[20](index=20&type=chunk)[22](index=22&type=chunk) - The ratio of Cash Equivalents + AFS Securities to Total Deposits stands at **20.4%**, which is strong compared to the peer median[24](index=24&type=chunk) - Insured deposits constitute **74%** of total deposits as of Q1 2025, enhancing funding stability[24](index=24&type=chunk) [Q1 2025 Financial Performance and Outlook](index=9&type=section&id=Q1%202025%20Financial%20Performance%20and%20Outlook) Q1 2025 saw decreased net income and compressed net interest margin, with updated 2025 outlook reflecting revised NIM and increased noninterest income [Key Performance Ratios](index=9&type=section&id=Key%20Performance%20Ratios) In Q1 2025, key performance metrics showed mixed results, with decreased operating returns but a stable tangible common equity to tangible assets ratio Quarterly Performance Trends | Metric | Q4 2024 | Q1 2025 | Trend | | :--- | :--- | :--- | :--- | | Operating Return on Avg Tangible Common Equity | 4.94% | 0.55% | Decreased | | Operating Return on Assets | 0.48% | 0.06% | Decreased | | Operating Efficiency Ratio | 59.5% | 61.5% | Increased (Worsened) | | Tangible Common Equity / Tangible Assets | 11.02% | 11.00% | Stable | [Net Interest Income and Margin](index=10&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin compressed slightly in Q1 2025 due to fewer days and lower cash balances, partially offset by reduced borrowing costs Net Interest Income and Margin (QoQ) | Metric | Q4 2024 | Q1 2025 | | :--- | :--- | :--- | | Net Interest Income | $70.8 million | $65.6 million | | Net Interest Margin (NIM) | 2.29% | 2.28% | - The decrease in NII was driven by lower interest income (**$9.1 million** decrease, mainly from volume) and a smaller decrease in interest expense (**$2.8 million** decrease, mainly from yield)[33](index=33&type=chunk)[34](index=34&type=chunk) - Management expects cash flows from the investment portfolio of **$292 million** for the remainder of 2025 to be redeployed at higher yields[34](index=34&type=chunk) [Net Income Summary](index=11&type=section&id=Net%20Income%20Summary) Net income significantly decreased in Q1 2025, driven by lower net interest income and a substantial increase in the provision for credit losses Net Income Drivers (Q4 2024 vs Q1 2025) | Component | Change (in thousands) | Reason | | :--- | :--- | :--- | | Net Interest Income | $(5,145) | Fewer days in quarter, lower cash balances | | Provision for Credit Losses | $(14,123) | Increased reserve for net charge-offs and higher overlay for CRE office risk | | Noninterest Income | $4,140 | Increase in income from a new BOLI policy | | Noninterest Expense | $(1,238) | Increased legal and professional fees | [2025 Company Outlook](index=12&type=section&id=2025%20Company%20Outlook) The company updated its 2025 outlook, projecting a downward revision for net interest margin but an upward revision for noninterest income due to a Q1 gain Current 2025 Outlook | Key Driver | Current 2025 Outlook | | :--- | :--- | | **Balance Sheet** | | | Average deposits | 1-4% increase | | Average loans | 2-5% increase | | **Income Statement** | | | Net interest margin | 2.35% - 2.50% (Revised Down) | | Noninterest income | $35 - $40 million (Revised Up) | | Noninterest expense | 3-5% growth | [Balance Sheet and Funding](index=13&type=section&id=Balance%20Sheet%20and%20Funding) The balance sheet reflects increased deposits and stable loans, with a focus on managing funding costs and optimizing the investment portfolio for higher yields [Deposit and Funding Profile](index=13&type=section&id=Deposit%20and%20Funding%20Profile) Total deposits increased year-over-year to $9.3 billion, with a shift in mix and rising costs, while the company maintains significant available liquidity - Period-end deposits were **$9.3 billion**, up **$776 million** from Q1 2024, driven by growth in money market and CD accounts[43](index=43&type=chunk)[51](index=51&type=chunk) - The cost of total deposits increased to **3.40%** in Q1 2025, up from **3.17%** in Q4 2024 and **3.36%** in Q1 2024[45](index=45&type=chunk) - The company has ample access to liquidity, with over **$4.8 billion** available from the FHLB, FRB Discount Window, cash, and unencumbered securities[49](index=49&type=chunk)[53](index=53&type=chunk) [Loan Portfolio Composition and Yields](index=18&type=section&id=Loan%20Portfolio%20Composition%20and%20Yields) Total loans remained stable at $7.9 billion, with CRE as the largest segment, and a slight increase in total loan yield contributing to stable earning asset yield Loan Portfolio Composition (March 31, 2025) | Loan Category | % of Total Loans | | :--- | :--- | | Total Income Producing CRE | 50% | | Owner-occupied - commercial real estate | 18% | | Construction - commercial and residential | 15% | | Commercial (C&I) | 15% | | Other | 2% | Quarterly Yield Analysis | Yield | Q4 2024 | Q1 2025 | | :--- | :--- | :--- | | Total Loan Yield | 6.91% | 6.93% | | Securities Yield | 2.01% | 2.04% | | Total Earning Asset Yield | 5.71% | 5.71% | [Investment Portfolio](index=32&type=section&id=Investment%20Portfolio) The investment portfolio, primarily Agency MBS and Debentures, decreased due to paydowns, with projected cash flows expected to be reinvested at higher yields - The portfolio is dominated by Agency MBS (**57%**) and Agency Debentures (**25%**)[118](index=118&type=chunk) - Total securities decreased by **$98 million** from 12/31/2024 due to principal paydowns and sales[120](index=120&type=chunk) - Projected cash flow for the remainder of 2025 is **$292 million**, which is expected to be reinvested at higher yields[120](index=120&type=chunk) [Asset Quality and Credit Risk](index=19&type=section&id=Asset%20Quality%20and%20Credit%20Risk) Asset quality metrics deteriorated in Q1 2025, marked by increased provisions, higher net charge-offs, and a rise in criticized and nonaccrual loans [Key Asset Quality Metrics](index=20&type=section&id=Key%20Asset%20Quality%20Metrics) Asset quality metrics deteriorated in Q1 2025, with significant increases in provision for credit losses, net charge-offs, and non-performing assets Quarterly Asset Quality Trends | Metric | Q4 2024 | Q1 2025 | Trend | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $10.1 million | $35.2 million | Increased | | NCO / Average Loans (annualized) | 0.57% | 1.07% | Increased (Worsened) | | NPAs / Assets | 1.22% | 1.81% | Increased (Worsened) | | ACL / Loans HFI | 1.40% | 1.63% | Increased | [Classified, Criticized, and Nonaccrual Loans](index=19&type=section&id=Classified%2C%20Criticized%2C%20and%20Nonaccrual%20Loans) Criticized and classified loans increased in Q1 2025, primarily due to CRE downgrades, with nonaccrual loans concentrated in office and assisted living sectors - Total criticized and classified loans (Special Mention + Substandard) increased by **$104 million** quarter-over-quarter to **$775 million**[72](index=72&type=chunk) - The increase in Special Mention loans was driven by C&I, while the increase in Substandard loans was driven by CRE[74](index=74&type=chunk) Top Nonaccrual Loans (as of March 31, 2025) | | Purpose/Location | Balance ($000s) | % Total NPLs | | :--- | :--- | :--- | :--- | | 1 | Office - Montgomery | $73,942 | 36.9% | | 2 | Office - Washington DC | $24,660 | 12.3% | | 3 | Office - Fairfax | $18,502 | 9.2% | | 4 | Assisted Living - Montgomery | $17,934 | 8.9% | | 5 | Land - Fairfax | $16,755 | 8.4% | [Detailed Loan Portfolio Review](index=15&type=section&id=Detailed%20Loan%20Portfolio%20Review) This section provides a detailed review of the loan portfolio, focusing on the performance and risk profiles of CRE Office, Multifamily, Construction, Hotel, and GovCon segments [Commercial Real Estate (CRE) - Office](index=15&type=section&id=Commercial%20Real%20Estate%20%28CRE%29%20-%20Office) The CRE Office portfolio, totaling $994.3 million, shows risk rating deterioration and a significant maturity wall, with limited exposure to lower-class properties CRE Office Portfolio Overview (as of March 31, 2025) | Category | Balance ($M) | of Loans | % Criticized/Classified | | :--- | :--- | :--- | :--- | | Owner Occupied Office | $145.0 | 92 | 1% | | Income Producing Office | $849.3 | 72 | 30% | | **Total CRE Office** | **$994.3** | **164** | **31%** | - The risk rating for the non-office portion of the income-producing CRE portfolio has remained largely unchanged, while the office portion has seen risk rating deterioration[55](index=55&type=chunk) - A significant portion of the income-producing office portfolio matures in the near term, with **23.8%** maturing by YE 2025 and an additional **37.9%** in 2026[59](index=59&type=chunk) [Commercial Real Estate (CRE) - Multifamily](index=17&type=section&id=Commercial%20Real%20Estate%20%28CRE%29%20-%20Multifamily) The income-producing Multifamily CRE portfolio, totaling $837.0 million, exhibits strong credit quality with high 'Pass' ratings and no non-accrual loans Income Producing Multifamily Portfolio (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Total CRE Balance | $837.0 million | | of Loans | 43 | | % Pass Rated | 92% | | % Criticized | 8% | | Non-Accrual % | 0% | | Weighted LTV | 63% | | Weighted DSCR | 1.2x | - There are zero multifamily loans on nonaccrual status; however, there are **4 substandard loans** totaling **$50.2 million** and **2 special mention loans** totaling **$31.7 million**[102](index=102&type=chunk) [Other Portfolios (CRE Construction, Hotel, GovCon)](index=28&type=section&id=Other%20Portfolios%20%28CRE%20Construction%2C%20Hotel%2C%20GovCon%29) Other specialized portfolios, including CRE Construction, Hotel, and GovCon, generally exhibit strong credit quality with high 'Pass' ratings and low non-accrual rates - **CRE Construction:** **$1.13 billion** total balance across 90 loans; 85 loans (**$1.1 billion**) are risk-rated 'Pass', while 5 loans (**$38.0 million**) have adverse risk ratings[109](index=109&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk) - **Hotel:** **$431.5 million** outstanding balance across 21 loans; all loans are risk-rated 'Pass' with zero nonaccrual or criticized loans[116](index=116&type=chunk) - **GovCon:** Less than **$250 million** outstanding balance; there are zero GovCon loans on nonaccrual status, and over **30%** of balances are tied to ABL-structured lines of credit[105](index=105&type=chunk) [Appendices](index=21&type=section&id=Appendices) The appendices offer supplementary financial details, including granular loan schedules, tangible book value analysis, and non-GAAP reconciliations for enhanced transparency [Detailed Loan Schedules](index=22&type=section&id=Detailed%20Loan%20Schedules) The appendices provide granular detail on specific loan categories, including nonaccrual, special mention, substandard, and top 25 loans, with geographic breakdowns - Provides a detailed breakdown of the **8 largest nonaccrual loans**, which total **$191.4 million**, or **95.5%** of all nonaccrual loans; several were placed on nonaccrual due to new appraisals, not payment default[85](index=85&type=chunk)[86](index=86&type=chunk) - Lists **9 Special Mention loans** over **$10 million** (totaling **$245.3 million**) and **15 Substandard loans** over **$10 million** (totaling **$380.7 million**), with details on collateral, LTV, and DSCR[87](index=87&type=chunk) - The top 25 loans total **$1.62 billion**, representing **20.3%** of the total loan portfolio; the largest single exposure is a **$93.9 million** construction loan for an apartment building[89](index=89&type=chunk) [Tangible Book Value Per Share Analysis](index=33&type=section&id=Tangible%20Book%20Value%20Per%20Share%20Analysis) Tangible book value per share was $40.59, showing a slight quarterly decrease due to dividends and AOCI, but a long-term CAGR of 3.3% Q1 2025 TBV per Share Walk | Component | Per Share Amount | | :--- | :--- | | 12/31/24 TBVPS | $40.99 | | Net Income | $0.06 | | Dividend | $(0.165) | | AOCI & Other | $(0.30) (Calculated) | | **3/31/25 TBVPS** | **$40.59** | - Tangible book value per share has shown a compound annual growth rate (CAGR) of **3.3%** from **$35.74** at year-end 2020 to **$40.59** at the end of Q1 2025[123](index=123&type=chunk) [Non-GAAP Reconciliation](index=37&type=section&id=Non-GAAP%20Reconciliation) This section reconciles non-GAAP financial measures like Tangible Common Equity and Operating Net Income to GAAP equivalents, providing clearer insights into performance - Reconciles GAAP Net Income to Operating Net Income, which primarily adjusts for a one-time goodwill impairment charge of **$104.2 million** taken in Q2 2024[129](index=129&type=chunk)[133](index=133&type=chunk) - Provides calculations for tangible common equity and tangible assets by subtracting intangible assets from their corresponding GAAP measures[129](index=129&type=chunk)[133](index=133&type=chunk) - Details the calculation of the Operating Efficiency Ratio by dividing Operating Noninterest Expense by operating revenue (Net Interest Income + Noninterest Income)[131](index=131&type=chunk)[135](index=135&type=chunk)

Core Viewpoint - Eagle Bancorp, Inc. reported a significant decline in net income for the first quarter of 2025, primarily due to increased provision expenses and a decrease in net interest income, while also announcing a cash dividend for shareholders [2][3][4]. Financial Performance - Net income for Q1 2025 was $1.7 million, or $0.06 per diluted share, down from $15.3 million, or $0.50 per diluted share in Q4 2024 [2][3]. - Pre-provision net revenue (PPNR) decreased to $28.4 million from $30.3 million in the previous quarter [2]. - The provision for credit losses increased to $26.3 million from $12.1 million in the prior quarter [3][6]. Income and Expenses - Net interest income fell to $65.6 million from $70.8 million in the previous quarter, attributed to lower average interest-bearing cash balances and a higher mix of interest-bearing deposits [6][8]. - Noninterest income rose to $8.2 million from $4.1 million, driven by a $200 million separate account BOLI transaction [6][8]. - Noninterest expenses increased to $45.5 million from $44.5 million, mainly due to higher legal and professional fees [8]. Asset Quality - Nonperforming assets decreased by $8.5 million to $202.9 million, representing 1.79% of total assets, down from 1.90% [7][13]. - The allowance for credit losses as a percentage of total loans rose to 1.63% from 1.44% [7][13]. - Annualized net charge-offs for Q1 were 0.57%, compared to 0.48% in Q4 2024 [7]. Loan and Deposit Growth - Total loans were $7.9 billion, a slight increase of 0.1% from the prior quarter [13]. - Total deposits grew by $146.2 million, or 1.6%, to $9.3 billion, primarily due to an increase in time deposit accounts [13]. - The company reported a solid growth in its commercial and industrial (C&I) portfolio, which increased by $109 million, or 4.3% [4]. Capital Position - The common equity tier one capital ratio stood at 14.6%, with a tangible common equity ratio exceeding 10% [4][7]. - Total shareholders' equity increased by 1.5% to $1.2 billion, driven by an increase in valuations of available-for-sale securities [13].

Core Viewpoint - Eagle Bancorp, Inc. will host a teleconference on April 24, 2025, to discuss its first quarter 2025 financial results, which will be released on April 23, 2025 [1] Group 1: Teleconference Details - The teleconference will feature CEO Susan Riel and CFO Eric Newell discussing the earnings [1] - Interested parties must register to participate, receiving a dial-in number and unique PIN [2] - The call will also be available via live webcast on the Company's website, with a replay accessible until May 8, 2025 [2] Group 2: Company Overview - Eagle Bancorp, Inc. is the holding company for EagleBank, which began operations in 1998 [4] - The bank is headquartered in Bethesda, Maryland, and operates 12 offices in Suburban Maryland, Washington, D.C., and Northern Virginia [4] - EagleBank focuses on building relationships with businesses, professionals, and individuals in its marketplace [4]

Financial Performance - The net loss for the year ended December 31, 2024, was $47.0 million, compared to a net income of $100.5 million for the same period in 2023, primarily due to a goodwill impairment of $104.2 million[272]. - The efficiency ratio significantly worsened to 88.99% in 2024 from 49.12% in 2023, reflecting increased operational costs[266][271]. - Net interest income decreased to $288.7 million for 2024, a 1% decline from $290.5 million in 2023, primarily due to increased interest expenses on deposits and borrowings[284]. - Total noninterest income in 2024 was $19.9 million, representing a 7% decrease from $21.5 million in 2023[284]. - The return on average assets (ROAA) was (0.38)% in 2024, down from 0.84% in 2023, primarily due to the goodwill impairment[282]. Asset and Loan Portfolio - As of December 31, 2024, the Company had total assets of approximately $11.1 billion, total loans of $7.9 billion, and total deposits of $9.1 billion[248]. - Total assets decreased from $11.66 billion in 2023 to $11.13 billion in 2024, a reduction of approximately 4.5%[265]. - The loan portfolio remained relatively flat at $7,934,888 thousand as of December 31, 2024, a decrease of $33,807 thousand or 0.4% from $7,968,695 thousand in 2023[333]. - The composition of the loan portfolio includes 83% related to real estate, with 66% being non-owner occupied commercial real estate as of December 31, 2024[334]. - The Company maintained a commercial real estate (CRE) loan portfolio of $6.5 billion, representing 81.5% of total loans, compared to $6.1 billion or 77.0% at December 31, 2023[340]. Credit Losses and Allowance - The provision for credit losses increased by $34.8 million, totaling $66.4 million for 2024, compared to $31.5 million in 2023[265][272]. - The allowance for credit losses increased to $114.4 million in 2024, up from $85.9 million in 2023, reflecting a higher risk environment[265]. - Nonperforming assets and loans 90+ days past due rose to $211.4 million, representing 1.90% of total assets, compared to 0.57% in 2023[266]. - The Company recorded net charge-offs of $38.6 million in 2024, up from $18.9 million in 2023, reflecting increased credit losses[266]. - The coverage ratio for allowance for credit losses to total nonperforming loans decreased to 55% in 2024 from 131% in 2023[376]. Deposits and Funding - Total deposits reached $9.1 billion at December 31, 2024, marking a 4% increase from $8.8 billion in 2023, driven by a $558.2 million rise in interest-bearing time deposits[387]. - Noninterest-bearing deposits fell by $734.7 million, or 32%, to $1.5 billion in 2024, while interest-bearing deposits increased by $499.5 million, or 12%[388]. - Brokered deposits increased to $4.0 billion, or 43.61% of total deposits, as of December 31, 2024, compared to $2.5 billion, or 28.8% of total deposits, in 2023[393]. - The Company had total borrowings of $600.8 million, a decrease from $1.4 billion in 2023, reflecting a strategic shift in funding sources[398]. - The average daily balance of customer repurchase agreements increased to $37.9 million in 2024 from $36.7 million in 2023[398]. Market Conditions and Economic Outlook - The Company experienced a 3.1% real U.S. GDP growth in 2024, compared to 3.3% growth in 2023, despite inflationary pressures and higher interest rates[245]. - The unemployment rate in the U.S. increased to 4.0% at the end of 2024, up from 3.7% at the end of 2023[245]. - The ten-year U.S. Treasury rate averaged 4.21% in 2024, up from 3.96% in 2023, indicating an increase in longer-term interest rates[246]. - The Federal Reserve decreased interest rates by a total of 100 basis points in September 2024 and the fourth quarter, which had minimal impact on net interest margin for most of the year[428]. - The Company remains cautious regarding commercial real estate market conditions, particularly in the office sector, while noting resilience in the multi-family commercial real estate sector[247]. Strategic Initiatives - The Company’s strategy focuses on growth, retaining talented staff, and building quality lending and deposit relationships, which has fostered future growth opportunities[251]. - The Company has implemented risk management procedures and underwriting criteria to address risks in its commercial real estate portfolio[344]. - The Company expects to maintain heightened risk management procedures due to its commercial real estate concentration[434].

Group 1: Investment Strategy - Value investing is a preferred method for identifying strong stocks in various market conditions, focusing on key valuation metrics to find undervalued stocks with profit potential [2] - The Zacks Rank system and Style Scores system are tools for investors to identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Company Analysis - Eagle Bancorp (EGBN) - Eagle Bancorp (EGBN) has a Zacks Rank of 2 (Buy) and an A grade for Value, with a current P/E ratio of 10.80, compared to the industry average of 11.25 [4] - EGBN's P/B ratio is 0.66, significantly lower than the industry's average P/B of 1.37, indicating attractive valuation [5] - The P/S ratio for EGBN is 1.12, compared to the industry's average P/S of 1.95, suggesting it may be undervalued [6] - EGBN's P/CF ratio is 12.54, which is lower than the industry's average P/CF of 13.91, further indicating potential undervaluation [7] Group 3: Company Analysis - Financial Institutions (FISI) - Financial Institutions (FISI) is rated 1 (Strong Buy) with a Value grade of A, and a P/B ratio of 0.91, compared to the industry's average of 1.37 [8] - FISI's P/B ratio has fluctuated between 0.59 and 0.95 over the past year, with a median of 0.78, indicating potential undervaluation [8] Group 4: Conclusion on Valuation - Both Eagle Bancorp and Financial Institutions are likely undervalued based on their financial metrics and earnings outlook, making them attractive options for value investors [9]

Core Viewpoint - Eagle Bancorp (EGBN) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Eagle Bancorp's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Eagle Bancorp is projected to earn $0.51 per share, marking a substantial increase of +5200% compared to the same period last year. The Zacks Consensus Estimate has risen by 6.32% over the last 30 days [4]. - For the full year, the expected earnings per share is $2.44, indicating a year-over-year growth of +29.1%. The consensus estimate has increased by 8.71% over the past month, with two estimates moving higher and no negative revisions [5]. Zacks Rank - Eagle Bancorp currently holds a Zacks Rank 1 (Strong Buy), attributed to favorable estimate revisions. This ranking is based on a proven track record of outperforming the market, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][6]. - Stocks with Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500, indicating strong potential for Eagle Bancorp [6]. Investment Outlook - The stock has appreciated by 6.4% over the past four weeks due to strong estimate revisions, suggesting that there may still be further upside potential. Investors are encouraged to consider adding Eagle Bancorp to their portfolios [7].

Financial Highlights - Total assets reached $11.1 billion[9], total loans amounted to $7.9 billion[9], and total deposits stood at $9.1 billion[9] - Tangible common equity was $1.2 billion[9], with a tangible book value per common share of $40.59[10] - The company's market capitalization was $758 million as of January 21, 2024[10] Capital & Liquidity - The CET1 Ratio was 14.63%, placing it in the top quartile of bank holding companies with $10 billion or more in assets[14] - Tangible Common Equity to Tangible Assets ratio was 11.02%[14] - The company had $4.6 billion in total on-balance sheet liquidity and available borrowing capacity at quarter-end[14] - Uninsured deposits represented 24% of total deposits[14] Asset Quality & Loan Portfolio - The allowance for credit losses to gross loans was 1.44%, and the allowance for credit losses to performing office loans was 3.81%[14] - Total period-end deposits increased by $323 million year-over-year[52] - Other short-term borrowings were $0.5 billion as of December 31, 2024, a 60.5% decrease from the prior quarter-end[59] Performance & Outlook - Net interest margin decreased to 2.29% for the fourth quarter of 2024[43] - Management expects cash flows from the investment portfolio of $386 million in 2025 to be reinvested at higher yields[43] - The company is forecasting a 1-4% average loan growth and a 2-3% effective tax rate for 2025[48]